Gilead Sciences, Inc. (NASDAQ: GILD)
For quite some time now, Gilead Sciences has dominated the hepatitis C treatment arena; and for good reason. In the past, treatment of hepatitis C lasted 48 weeks and included a wide variety of vaccines. Sadly enough, there was no where near a 100% success rate in treatment. However, Sovaldi (Owned by GILD) has a higher than 90% success rate on a 12 week treatment plan with less side effects. So, all in all, it only makes sense that patients would convert to GILD treatments rather than previous methods.
AbbVie Inc (NYSE: ABBV)
Knowing that there is a massive amount of money in the hepatitis C market (more than $10 billion annually), another biotech giant wants to claim their piece of the pie; AbbVie. The company has been testing its own cocktail in an effort to come up with a treatment that’s just as effective. However, their plan just doesn’t seem as attractive as the one offered by Gilead Sciences.
In a clear attempt to take some of the market from GILD, ABBV has launched Viekira Pack. The only problem for ABBV is that it requires patients to take several pills per day with ribavirin as part of the cocktail. Unfortunately ribavirin is know to cause some pretty scary side effects. While the treatment is a 12 week treatment like Sovaldi, it’s simply not up to par with the already leading option.
Gilead Sciences Will Keep Control Of The Market
Sure, a 12 week treatment is a 12 week treatment; ABBV did great on that side. However, any patient in the world is going to want the treatment that’s just as effective, just as quick, but has less side effects. That my friends is Sovaldi. Therefore, when it comes to the hepatitis C market, ABBV is just riding a bike through quick sand…they’re going to need to come up with something better!
What Do You Think?
Do you think GILD has anything to worry about from ABBV? Let us know in the comments below!